“But, corporate profits as a percentage of GDP are higher than ever. They’re 11%. How can Obama be destroying capitalism?

This is the highest corporate profits since World War II. A fifty year high!

If corporate profits are highest ever, how can you say the private sector is not doing well?”

Response: Part of the reason is the expansion of overseas sales, but the profit recovery is primarily coming off the backs of American workers. There is two ways to make a profit. You can either reduce costs or raise revenues. Profit equals revenue minus costs. Right? Companies have been cutting costs aggressively to the bone, amongst them labor costs, and amongst them higher unemployment.

And, record-high profits do not necessarily translate into improvements in the economy. Over 70% of the increase in profit margins directly correlates with the reduction in workers’ wages and benefits. So, of course their profits are higher — they’re workforce is below skeleton crew levels. And, companies are making record profits because they have globalized to an extent never before.

You see, capitalism is a gentleman. The miracle of the market is that it goes where it’s wanted. And, if there is one thing Washington is good at, it’s creating uncertainty. The fear of higher taxes, rogue regulations and ObamaCare are a prime example of that uncertainty. And, higher taxes and federal mandates destroy economies. When that happens, corporations flee to more benevolent economies.

Regardless, like most liberals, Mr Obama is suspicious of the profit motive. But, we are here today to talk about ’60 problems’ Obama has with his failed Keynesian economic policies. But before we do, lets watch DNC Chair Poodle Debbie Wasserman Schultz claim ownership on the economy: “We clearly are responsible.” For a longer version (2 min 40 seconds) of DWS describing the Dems “own the economy” and “the economy has turned around” click here.